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traders position for a short week packed with critical today's cover the recent dip in american paychecks-- is effecting the economy. the school of sachs. do you have what it takes to cut it in a goldman sachs business class? and... why bulls are rushing the market ... first business starts now.... you're watching first business: financial news, analysis, and today's investment ideas good morning, i'm angela miles. it's january 22nd. in today's first look strap yourself in.. between action this weekout of washington and a heavy week of earnings it's likely to be an active trading week.
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stocks inched up modestly during the past trading week. nasdaq gained the least-- mostly because shares of apple lost nearly 4%. the senate takes up the assault weapons ban... and johnson and johnson is reportedly negotiatin a $2 billion dollar settlement with patients who received recalled artifical hips philip streible of rjo futures joins us now for a look at the trading week ahead. good morning to you. hope you had a nice weekend off. let's start with this bullish situation. i'm almost starting to feel like there are too many bulls in the market. everybody loves this market. there are a lot of people talking about that. equities have been on such an upward momentum. some of the earnings have been coming out really good. we've seen quite a bit of upbeat, positive economic data. last week we saw china release some better than expected gdp numbers so the momentum seems to be behind the bulls right now. which makes me start to get a little nervous. let's talk about the debt ceiling extension as well. does
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this take anything off the table for the market or is the market over watching what's going on in washington? if you look at what happened with the fiscal cliff, how that was solved within 24 hours to go. a lot of traders and investors anticipate a similar situation with the debt ceiling. whether we get this extension of three months or whether overnight some kind of resolution to it is being done it seems like the general consensus is this thing will be fixed and we will be able to move on and look forward past it. there's a blast of winter rushing through the u.s. this week. what will that mean for natural gas prices? we have seen natural gas prices climb aggressively off their lows. we pushed through 350 last week. we also had a draw down in their storage report. we're expecting another draw down going forward. but as far as other similar markets like crude oil and heating oil we've also seen quite a bit of demand for the. crude oil has a little bit
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more geopolitical tension so you are seeing the bent crude start to pick up a little bit more than west texas. but i think all these markets still look pretty good going forward. thank you philip. thank you. the bi-weekly paychecks most of us receive every other friday have been a little smaller since the first of the year. --the result of the payroll tax holiday expiring as part of the fiscal cliff deal. our cover story looks into whether its slowing the economic recovery. not counting a raise or bonus---most of us have a little less take-home pay, not more. january first, the payroll tax went back to 6.2%. "everyone forgot that it was a holiday. a lot of people thought this was the new status quo." it wasn't. and consumers are pretty direct about it. "it adds up to $900 a year. is that significant? yes." "no one likes being taxes. but you don't have a choice." now, if you make 50,000 a'll pay roughly a thousand dollars more in payroll taxes for the year. every two weeks your take-home
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pay--roughly 36-dollars less. retailers expect it to affect consumer spending. "the likelihood is that it will. we've seen them cutback during the holidays and we expect this 'austerity' to be here for awhile until they get their 'sea-legs' under this program" but getting those sea-legs may take months. "i'm not happy about it. so has it affected your spending? yes, i'm getting cheaper lunches than i would normally." but is it enough to stall the economic recovery? "trend right now is they've pulled back. but it's boring so we'll eventually be back to $5 starbucks and spending a little extra for a device we look for. "we've are going to see a drag. but we have other sectors that will pick up the slack, such as housing. so will it stall us out? no. would having that money have helped? probably."
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susan schmidt says another sector doing well three weeks into the new year--investment in energy infrastructure, such as pipeline extensions and transmission lines. a vote today on the hill could buy time for lawmakers. house republicans are planning a vote, authorizing a 3 month extension of the debt limit. it pushes off the gop's battle for spending cuts tied to raising the debt limit. president obama is calling for a "clean" debt limit increase, because it pays for bills the u.s. has already racked up. meanwhile, house speaker john boehner says he wants the house and senate to pass a budget in the near term that includes severe cuts to social programs. without a budget, boehner says lawmakers should not receive pay checks. president obama wants a balanced budget. the senate is expected to approve aid for states devastated by superstorm sandy. senators will vote on a $50 billion dollar bill today. last week, congress said yes to the funding... but not without
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no votes. the majority of republican house members voted against the bill.. calling it too expensive and saying it should come with spending cuts. january 4th, congress agreed to $9.7 billion package to assist with flood insurance claims from the storm. japan airlines is canceling more flights this week due to technical problems aboard boeing's 787 dreamliner. last week jal cancelled round trip flights.. and will continue those cancellations through january 25th. airlines in japan are among the first to fly the dreamliner. the e-u and f-a-a already grounded all 787s last week after batteries caught fire. reports say solving the battery problems will be "very expensive." u.s. transportation authorities are not sure when any of the aircraft will fly again. traders have their eyes on shares of osi systems-- now that tsa agents will no longer peek at nude images of travelers in airport scanners. the transportation security agency ended its contract with osi last week. on friday the stock bounced as much as 5% as some analysts
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called the move to pull the plug on the scanners a plus. they contend controversey over the body scanners caused the stock to plunge 33% back in november. norwegian cruise lines set sail for the stock market as a public company last week but ran into rough waters. shares opened friday at $25 then, closed ten cents lower at $24.90. it lists on nasdaq under symbol n-c-l-h.coming in february, pfizer's animal- health med unit zo-ett-is set to go public with a price range of $22-25 dollars, trading on the new york stock exchange under z-t-s. americans took a sigh of relief after a deal was reached to avert the fiscal cliff. one study finds people are more confident in their financial security now than in december. a recent survey by bankrate- dot-com reports its financial security index jumped three points in january--the biggest monthly increase in more than a year after the deal was reached in washington. however -- consumers still have
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concerns over savings. savings continues to be the achilles heel -- that is one where people are still pretty negative about the savings they had now versus a year ago. job security actually saw a nice rebound. and i think that provided the labor market continues to improve -- i think that is a rating that will continue to improve, depending on what happens in washington. mcbride notes the economy is on a good track -- which could continue to help the housing market in 20- 13. secrecy surounding money stashed in the cayman islands may soon be revealed. according to reports-- there's a proposal to make the names of thousands of companies, directors, and hedge funds, available to the public that are currently sheltered on the islands. if approved a public database would list money that is housed offshore in the caribbean territory. the financial times reports-- the caymans have come under critiscm for the lack of regulations. higher education is turning to the web to gain revenue.
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as colleges look for new ways to make money -- some -- such as san jose state university -- have added online courses -- to attract students. at for-profit institutions such as university of phoenix -- students obtain their degree on the internet. now -- many colleges and universities with physical campuses are trying out the web model. the education sector has struggled to add revenue throughout the recession. cordelia maloney -- of the unversity of illinois at chicago, says the online model could take off if universities find a way to do it right. "i think what people are really struggling to do right now is figuring out how to make it work. how to offer a very high quality education at a resonable price. and do it in a way that is engaging for students so that you don't have situations where students get into these things spend money on it -- and then discover they can't complete it." maloney says nearly a third of all students 25 and older are taking classes online. americans are spending more money to spruce up their homes. money for remodeling last year totaled $150 billion dollars which was 20% more than the 2011.
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those numbers are likely to hold up. economist at harvard predict diy-ers will spend big this year. and remodeling activity will grow by double digits through the 3rd quarter in 2013. hollywood is looking to wall street's offspring for funding. reports say some wall street kids are dishing out millions to invest in hollywood projects. megan ellison -- daughter of oracle ceo larry ellison -- has financed films including the master -- and the oscar nominated zero dark thirty -- which she financed with a whopping 42 million dollars of her own money. teddy schwarzman -- whose father is blackstone group ceo stephen schwarzman recently funded mark wahlberg's latest, "broken city" still to come two of the most successful men in finance are are sharing their sage advice. how you could become the next entreprenuer in their classroom thats later.
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find out what is so alluring about the most successful companies in our world today -- that's next with bill moller -- after this in the know message.
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7,000 high-school students drop out every school day. let's catch them before it's too late. to start helping students in your community, visit what is it that makes the great tech and digital companies great? gary shapiro should be able to pin it down. he's head of the consumer electronics association which represents thousands of consumer
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electronics companies. that's also the outfit that runs the annual international consumer electronics show. he shares his insights in the new book, ninja innovation: the ten killer strategies of the world's most successful businesses. gary it's a short interview. killer strategies---let's get to the deadliest of these strategies. what would that be? first you have to be a ninja which means you're like that ancient japanese warrior accomplishing victory against all odds. you have to be flexible, fast, curious, think outside the box. knock down walls, go around them, go under them---but never say i hit a wall. that's what companies and people and even governments do to succeed. you also have to have a team. you have to be flexible. you have to take risks. and when you fail you have to learn from your failure, pick yourself up, get up and do it better next time. gary, those don't sound like radical ideas. it seems like almost common business sense. well some of it is common business sense of course. there's a lack of common business sense with some companies. you also have to figure out what you're good at. one of the things that is
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uncommon, people say they have weaknesses so therefore they should correct them. no, for people and even for businesses you're not going to correct your weaknesses but you hire people that will correct the weaknesses. you don't try to change people. how do you motivate people? not just by money. you have to get to know them as people and understand their needs and wants and desires and they go through lifecycles. you have to do things differently and think outside the box. provide something that people want to buy and listen to your customers. and who listens to them? the people on your frontline. the people who are the lowest down in the corporation are almost the most valuable in terms of getting feedback and coming up with new ideas. so a lot of it is common sense. a lot of it is thinking about the future. give me some companies that have figured this out and are actually doing all of this. obviously apple is the prime one but take a company like amazon. they had a great model going. they thought outside the box and they created competition with the kindle. i applaud jeff bezos for that. ibm has reinvented itself totally every 20 years. totally different company than what it was. and of course microsoft.
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they get some abuse but it came up with the kinect product after having the killer windows product. companies that have more than one hit wonders are great companies. and small businesses can do the same. a successful small business can grow if it's willing to change and try new things, hire new people and not hire clones of the founder. gary shapiro, thanks so much. thank you for having me. it's always a pleasure. thank you bill .... still ahead -- there is fierce competition to 'get schooled' by goldman sachs. find out more after this.
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ehicle. when i came here, i... i couldn't move. [male announce david was broadsided on the highway. they weren't very hopeful at the time that he would survive at all.. [male announce an ied wounded mike in afghanistan.
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i don't remember all of the blast... was over 500 pounds of explosives. [male announce their physical injuries have healed. the traumatic brain injuries - tbis - haven't. the way i describe it is you're just afraid. am i going to start forgetting things? [male announce tbi is as serious as any battlefield injury. you're just not the guy you used to be. [male announce thankfully va has made important advancements in tbi seeing it, treating it, understanding it. and they're here to help veterans affected by it. i can see that what we're doing here at the polytrauma unit is to move from survivability to thrive-ability. [male announce if you think you or a veteran you know has sustained a brain injury, get screened.
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it is one of the most sought after classes in america. warren buffett, ceo of berkshire hathaway and lloyd blankfein, ceo of goldman sachs created a quickie business school for entrepreneurs. joining us on set this morning is liz gardner of the women's business development center. good morning to you and you actually help to promote this school. we do. absolutely. this is sort of like a mini mba. the women's business development center has been in the chicagoland area for about 26 years. we partnered with goldman sachs and the ten thousand small business program to get our clients involved with learning more about how to work on their business instead of in their business. so, help us to work the system. absolutely. how can someone gain entrance to these very special classes? well, its very interesting,
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there's an application process and what we're doing on january 23rd is we're helping applicants fill out there applications and learn more about the program here at our center on 8 south michigan avenue. but primarily what you can do is go to the website and fill out the application. it's a very intensive application but it really helps you to think about what you are doing in your business and the financial aspects of your business. what would be some suggestions because of course they get a lot of applications. how do you set yourself apart? you really want to talk about the passion you have for your business. you really must love what you do and that you're on a trajectory for growth. so that's the whole intent is to really create jobs and to grow thhe community. that's what our country's founded on and that's what we want to see happen with our small businesses. here are some of the rules: applicants must be owner or co-owner of the business. the business must be in operation for at least two years and have revenues between 150 thousand and 4 million dollars in the most recent fiscal year. and you also have
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to employ at least four employees, correct? absolutely. however, the employees can be contract employees. so if you're a small business of two people and you need help seasonally, we can count those folks as well. we really are open to helping those businesses grow. we want to know if you have the fire in your belly to really grow that business and we're here to help you do that. some of the business owners who have taken the classes say that their revenues are up 70 percent or they've been able to hire people. why do you think it is that warren buffett and lloyd blankfein are so giving of this valuable information and these classes? it's important. it's important for our country. it's important for our communities and it's important for entrepreneurs themselves. come on these guys like to make money. absolutely they do. everybody likes to make money, even the small business owners. but for them it makes good business sense to put your talents and your money back into the community where you're helping them grow. absolutely it makes a lot of sense. does it matter if you get your application in sooner rather than later? it does not. the program is five years. and we take applications every fifth day of the month. we urgerpeople to get that application in early. we really want to review the application.
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we want to help you make the best business case in being accepted. it's very competitive and we would love to see all of our clients get in. and very altruistic at the same time. absolutely. good to have you on the show. that's liz gardner of wbdc. thank you so much for having me. just ahead a trader gives us a preview of how he's setting up for this week's tech earnings .... chart talk is next
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andrew keene president of joins us for a busy segment. let's get down to it. we'll start with google. what do you expect with earnings from this stock? google google google. so i think that the last eight quarters google has sold off five of the last eight quarters. since its 740 top it is down to 705 so you can rationalize a lower high on the daily chart. it looked very strong and then facebook had their announcement. they said they were going to have search but they were going to have search in facebook only. it was good for google---friday and
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thursday it sold back off so it's currently trading 705. i want to be a buyer on a dip instead of buying it right here so i'm going to be looking for a pullback to the 670-675 level. we have some moving averages down there. i'm probably going to wait until after earnings. they disappointed so strongly last time on earnings. moving on to apple. this is your stock. or your old stock. you fell out of love with it. i've fallen out of love with apple. if you look at charts, i'm not a tech guy, but out of every single chart i've looked at in the last two months apple is the weakest chart. every rally has been sold in apple. apple is trading under all of the moving averages. even the 20 day moving average is 517. i got shorted on thursday right around the 504 level. it sold off to 496. i'm still short at close on friday around the 500 level. apple could actually surprise maybe. it's been taken down so bad. their pe if you take out the if you back out the cash is like a 7. they're not gonna have the growth going forward. i think it could be like a rim-like story. anything that could be good might get a pop. i am short it but i'll probably take off my short before earnings. i'd rather sell apple on a rally than buy a dip in that one. netflix. all of a sudden investors are showing a lot of love to this stock. i shorted netflix last week. i took some profits and then i took a little bit of losses so i probably got a scratch out of it. gets above
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this $100 level and sees a little selling pressure. gets above to about 101.75, 102. if we look at this, this chart looks great lately. on the daily charts since they got their deal with disney in 2016 the chart looks good. netflix is only about 6 to 8 billion dollars. this is a potential take over candidate. i think they will get purchased or heavily talked about getting purchased this year. so the problem with that---i don't want to be short this stock---i'd rather be long. i don't want to be buying it above 100. wait for a pullback but i'd rather get long than short in netflix. thank you andrew. thank you. it's time for us to fly--- coming up tomorrow we help you cure a case of the banking blues. with ways to find a better bank. from all of us at first business.. thank you for watching.

First Business
KICU January 22, 2013 4:00am-4:30am PST

News/Business. Angie Miles. (2013) New. (CC) (Stereo)

TOPIC FREQUENCY Us 7, Goldman Sachs 4, Washington 4, U.s. 3, Gary Shapiro 2, Liz Gardner 2, Google 2, Johnson 2, Gary 2, Tbi 2, Osi 2, Apple 2, Lloyd Blankfein 2, Warren Buffett 2, Boeing 1, Tsa 1, Ibm 1, Starbucks 1, Pfizer 1, Illinois 1
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